'I also own my home and an SUV outright, with no outstanding debt'

"I would like to simplify my estate planning if possible." (Photo subject is a model.)

Dear Quentin,

I am a single, healthy 74-year-old woman. I have never been married and I have no children. I currently live in Texas and plan to donate most, if not all, of my assets to charity after I pass away.

At present, I have four brokerage accounts - two individual accounts, one self-directed IRA and one self-directed Roth IRA - as well as several online bank accounts. Altogether, these accounts total a little over $10 million.

Instead of hiring an attorney to establish a revocable living trust or prepare a formal will, can I simply name different charitable organizations as beneficiaries on all of my financial accounts? I could also handwrite a last will and testament explaining my wishes.

One part of me would like to leave my house and SUV to my niece and nephew, because they are both willing to serve as my financial and medical powers of attorney and to help carry out my wishes after my death.

However, another part of me would actually prefer to donate the house and SUV to charity. My concern is that I need someone I trust to serve as my financial and medical powers of attorney and to handle the administration of my estate.

My main goal is to help people who are poor and in need. If my niece and nephew receive the house and SUV, I would probably ask them to donate half of the proceeds to the Red Cross. I am also preparing my tax return now.

I also own my home and SUV outright, with no outstanding debt. I have already prepaid my funeral expenses. I would like to simplify my estate planning if possible. In particular, I would appreciate advice about:

1. How to properly arrange for my niece and nephew to serve as my financial and medical powers of attorney. Who should serve as executor or otherwise handle my estate after my death?

2. Is a handwritten will legally sufficient and advisable in Texas?

3. Will there be additional tax returns or other tax obligations that need to be handled after I die? If so, who would be responsible for filing them? Are there tax advantages or disadvantages to leaving my assets directly to charities?

I would very much appreciate any suggestions you have. How do you think I should proceed?

Single & Financially Secure

Related: 'This is a tricky subject': We're in our 70s and our only child is 40. Do we leave her everything?

You can email The Moneyist with any financial and ethical questions at qfottrell@marketwatch.com. The Moneyist regrets he cannot reply to questions individually.

I am tempted to recommend a trust. It gives you more control over the timing of those distributions.

Dear Secure,

You know what you want. The rest is logistics.

You have three options: a will, beneficiary designations or a trust. What you decide will largely depend on how many beneficiaries you have. Leaving your stocks and money in a will ensures they go through probate, a public and time-consuming process. Your other option, given that the sum is $10 million, is to set up an irrevocable trust that manages distributions. Given the thoughtfulness of your letter and the millions of dollars involved, I am tempted to recommend a trust. It gives you more control over the timing of those distributions. It could also provide sums of money, even if they are token sums, for your niece and nephew.

An executor should be competent, local and willing. An executor has a fiduciary duty to act in your best interests and must account for the estate's assets, cash flow, expenses, sales, tax documents and other matters. Since trustworthiness is already established, having both your niece and nephew serve as executor could be a win-win. How much they are paid often depends on state probate law. In Texas, an executor can receive a 5% commission on money they actually receive or pay out while handling the estate. But that does not mean the executor automatically gets 5% on the estate's worth.

As for your will, you could write one without the help of a lawyer, but you would be wiser not to do so. Too many things can go wrong. Holographic, or handwritten, wills are legal in about half of the states in the U.S, including Texas, but it's not worth writing a will on the cheap or downloading one from the internet. It must be 100% handwritten with no typed words, printed forms or help from another person. It must clearly state your wish to give away your property and include your signature. Unlike formal wills, you do not need witnesses to watch you sign it. All of this ad hoc-ness makes it easier for family members to challenge in court.

Hire an attorney to draft a durable financial power of attorney and medical power of attorney, naming your niece as primary agent and your nephew as successor (or vice versa). Add a HIPAA authorization and a directive to physicians, so they can access your medical records and make informed decisions on your behalf should you become incapacitated. The financial power of attorney should explicitly authorize your agent to manage your brokerage, IRA, Roth IRA, bank accounts and other assets. Your attorney should coordinate your will, beneficiary designations, charitable gifts and executor stipulations so they all work like clockwork.

After you die, your executor will need to take care of several tax matters, including filing your final income-tax return (Form 1040), an estate income-tax return (Form 1041) if your estate earns income after your death, and potentially a federal estate-tax return (Form 706) if your estate exceeds the federal estate-tax exemption ($15 million per person in 2026). Texas does not impose a separate estate tax. Naming a qualified charity as the beneficiary of your IRA or 401(k) can help avoid tax on the retirement assets that would otherwise be taxable to an individual beneficiary. Ditto, donating appreciated stocks directly to charity.

The best estate plan leaves no one guessing.

Related: 'This has been an emotionally difficult time': My brother has cancer and my father is 94. How do I shoulder this responsibility?

The Moneyist regrets he cannot respond to letters individually. Check out The Moneyist's private Facebook group, where members help answer life's thorniest money issues. Post your questions, or weigh in on the latest Moneyist columns.

More columns from Quentin Fottrell:

My wife and I are both retired': Do we dip into our $2.3 million fund to pay off our $300,000 mortgage at 2.9%?

'I don't wish to be cold-hearted': My elderly relative can no longer care for himself. Am I wrong to leave his care to the state?

My brother asked me to sign as his executor, but wouldn't let me read the document. Should I have refused?

By emailing your questions to The Moneyist or posting your dilemmas on The Moneyist Facebook group, you agree to have them published anonymously on MarketWatch.

By submitting your story to Dow Jones & Co., the publisher of MarketWatch, you understand and agree that we may use your story, or versions of it, in all media and platforms, including via third parties.

-Quentin Fottrell